The factory payroll for the week is $200,000, consisting of $140,000 earned by 100 direct laborers and $60,000 earned by 30 indirect laborers. The total of factory bonuses to be received at year-end is estimated at $400,000. All factory workers receive a two-week paid vacation and five paid holidays.
Required:
1. Prepare the journal entry to distribute the weekly payroll.
2. Prepare the journal entry to record the costs and liabilities related to the bonus, vacation pay, and holiday pay, assuming that the fringe benefits of the direct laborers are charged to Factory Overhead.